08/09/2025

BIZ & FINANCE MONDAY | SEPT 8, 2025

17

Canada PM’s strategy to counter Trump takes shape

ATHENS: Greek Prime Minister Kyriakos Mitsotakis on Saturday announced generous income tax breaks to boost households with children, part of a tax reform worth €1.6 billion ($1.87 billion). The tax deductions, announced during his yearly speech on economic policy, come as his government seeks to halt a slide in popularity caused by a protracted cost of living crisis and corruption claims. Strong economic growth, a higher-than expected budget surplus and more comprehensive tax collection will help finance the package, which will come into force in 2026, Mitsotakis said. “We are all well aware that Greeks are struggling to make ends meet. Therefore our non-negotiable priority is to prop up their income,” he said. After a 2009-2018 debt crisis marked by years of economic pain, Greece’s economy, driven by tourism, has revived and is approaching its pre-crisis size. But Greece remains Europe’s most indebted nation and disposable incomes still trail the EU average due to rising energy, food and housing prices that hurt purchasing power, despite a cumulative 35% minimum wage increase. The tax reform includes lower taxation by two percentage points for all brackets and a zero tax rate for low-income families with four children and young workers amid tumbling birth rates and rising housing costs. Mitsotakis also announced increases in pensions, while a real estate tax for remote areas will be scrapped to encourage young people to leave big cities and move to the countryside. Mitsotakis’ centre-right New Democracy party has seen its ratings drop to around 22-25% in opinion polls since June from the 41% of votes it won in 2019 when it came to power on pledges to redistribute the fruits of economic growth more evenly. – Reuters Greece leader unveils tax breaks amid cost of living crisis CHINA’S FOREX RESERVES RISE TO US3.32 TRILLION IN AUGUST HONG KONG: China’s foreign exchange reserves were up more than expected in August, official data showed yesterday, as the dollar weakened against other major currencies. The country’s foreign exchange reserves, the world’s largest, rose by US$29.9 billion last month to US$3.322 trillion (RM14 trillion), while analysts expected US$3.310 trillion in a Reuters poll. The reserves were US$3.292 trillion in July. The yuan strengthened 0.87% against the dollar in August, while the dollar was down 2.19% against a basket of other major currencies. China’s gold reserves were 74.02 million fine troy ounces at the end of August, up from 73.96 million at the end of July, as the central bank bought the precious metal for a 10th straight month. – Reuters SOUTH KOREA TIGHTENS MORTGAGE RULES IN SEOUL SEOUL: South Korea tightened mortgage rules for Seoul yesterday, unveiling plans to tackle a housing shortage in the capital by adding more affordable homes than previously planned as it leverages land owned by state developers. The loan-to value ratio for wealthy parts of Seoul, including the areas of Gangnam and Yongsan will be tightened to 40% of the property’s value from today, against 50% now. South Korea has complex borrowing rules for households, especially on mortgage loans, which are linked to income as well as the value and locations of homes. South Korea plans to step up use of land owned by state-run companies, including the Korea Land and Housing Corporation, for development, while streamlining rules for the knockdown-and-rebuild of apart ments to tackle its housing shortage. – Reuters

BR I E F S

United States. Canada is the world’s fourth largest oil exporter and its crude reserves are the world’s third largest. Most of its resources are in the western province of Alberta, which exports almost exclusively to the United States, as Canada lacks the infrastructure to efficiently get energy products to other foreign markets. Former prime minister Justin Trudeau, Carney’s predecessor, put climate change at the centre of his political brand and faced criticism from some over his perceived lack of support for the energy sector. In a shift from the Trudeau era, Carney’s Liberals now support exporting liquefied natural gas to Europe. Carney has repeatedly said Canada “can be an energy superpower.” But not everyone is enthusiastic about that plan. Greenpeace has accused the prime minister of backing “climate-wrecking infrastructure” while ignoring clean energy. Carney could likely press ahead despite concerns from pro-climate NGOs, but support from Indigenous leaders – for whom safeguarding the environment is top priority – is seen as essential. Despite Carney’s efforts to secure Indigenous backing for his major projects push, their concern persists. – AFP

“We are moving at a speed not seen in generations,” Carney said, a level of urgency he argues is required as Trump reshapes the global economy. Trump’s threats to annex Canada have eased, but his trade war is hurting the Canadian economy. US tariffs on autos, steel and aluminium have squeezed the three crucial sectors and led to job losses. The unemployment rate hit 7.1% in August, the highest level since 2016 outside of the pandemic. That “adds to evidence that the trade war is taking its toll on Canadian labor markets,” RBC senior economist Claire Fan said last week. Since entering politics earlier this year, Carney has insisted Canada needs to break its decades-long reliance on US trade by revitalising internal commerce while pursuing new markets in Europe and Asia. During a visit to Germany last month, Carney said his government was “unleashing half a trillion dollars of investment” in infrastructure for energy, ports and other sectors. Jay Khosla, an energy expert at the Public Policy Forum, said the momentum to build would not have been possible without Trump. “We know our economy is in peril,” he said, noting Canada was effectively “captured economically,“ because of its closeness to the

MONETREAL: On the night he won Canada’s election, Prime Minister Mark Carney summarised his plan to jumpstart the country’s economy in response to US President Donald Trump’s threats. “Build, baby, build!” Carney told a jubilant crowd of Liberal party supporters in April. In the early weeks of his first term, Carney’s plans to build have taken shape, headlined by the new “Major Projects Office”, launched last month to spearhead the construction of ports, highways, mines and perhaps a new oil pipeline – a contentious subject for groups concerned about the environment. The office, which is expected to announce its priorities in the coming days, was formed after Carney’s Liberals secured cross-party support to pass legislation empowering his government to fast-track “nation-building projects”. o Major Projects Office, launched last month, to spearhead construction of ports, highways, mines and perhaps an oil pipeline

Tourists visiting Hanoi Train Street, one of the famous tourist destinations in Hanoi. Vietnam is targeting economic growth this year of 8.3% to 8.5%, with a target range of 4.5% to 5.0% for inflation. – REUTERSPIC

Vietnam exports strong, inflation pressure increases HANOI: Vietnam’s exports in August rose 14.5% from a year earlier to US$43.39 billion (RM183.49 billion), government data showed on Saturday, the first trade figures since a tariff of 20% on shipments to the United States took effect during the month. United States for the period from January to August, the statistics office said. Vietnam’s trade with China stood at US$117.9 billion during the same period, it added. Vietnam relies heavily on China for materials and equipment for its industrial production. from a year earlier, while retail sales were up 10.6%, the report said. Consumer prices in August rose 3.24% from a year earlier, the office said. Vietnam is targeting economic growth this year of 8.3% to 8.5%, with a target range of 4.5% to 5.0% for inflation.

Global trade tension, along with geopolitical and military conflicts, is affecting production and supply chains, said Prime Minister Pham Minh Chinh. “Growth in domestic consumption, exports and public investment has shown signs of slowing,” Chinh told a Cabinet meeting in Hanoi, while also warning of mounting pressure on inflation and the exchange rate. Industrial production in August rose 8.9%

Imports in the month rose 17.7% from a year earlier to US$39.67 billion, for a trade surplus of US$3.72 billion for the month, the National Statistics Office (NSO) said in a report. Vietnam’s biggest market, the United States imposed the 20% tariff from Aug 7, while transshipments from third countries through Vietnam face a levy of 40%. The Southeast Asian manufacturing hub reported total trade of US$99.1 billion with the

“This year’s growth target ... is a difficult one, but we must reach it, however difficult it is,” Chinh added. For the first eight months of the year, exports rose 14.8% from a year earlier to US$305.96 billion, and imports were up 17.9%, at US$291.97 billion, translating into a trade surplus of US$13.99 billion for the period, the NSO said. – Reuters